What is an executive summary?
The executive summary is one of the most crucial elements of any business plan. It gives a brief overview of your business without going into detail, providing enough information for a potential investor to decide whether to read the rest of your Business plan.
How to write an executive summary
Your business plan’s executive summary should provide a comprehensive overview of your business to attract potential investors. When writing the executive summary, try to:
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explain your core product or service in plain English, without overly relying on 'salesy' language. Investors simply want to know exactly what your business is principally about - save the details for later
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demonstrate an understanding of your business within the marketplace and any specific opportunities, to show that you’ve done your research and project confidence
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give an overview of the management team. This is particularly important where certain members are well regarded in a certain sector as it may persuade a potential investor to read further
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provide a synopsis of your current financial situation and the amount of investment sought, together with the reasons why you require the additional capital, to help an investor to know exactly where you stand
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reach a set of financial projections. It's important to include realistic goals and expectations in this section to show you have a firm grasp of your target market and the potential of your business within it. A projected return on investment (ROI) will anticipate the value of an investor's contribution
What is a business outline?
The business outline is the section of your Business plan that comes after the executive summary. It is the section that most investors will look at if the executive summary succeeds in drawing them in.
The business outline should go into greater detail, explaining your business concept and the background to your startup and detailing any existing assets.
What should a business outline cover?
Your business outline should provide more detailed information about your business. This includes:
An explanation of your business
Explaining exactly what your business is about is crucial when it comes to persuading anyone to help you start trading. Show that you have a thorough knowledge of:
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your product or service
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the industry in general, and
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your target market
You should also:
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avoid unnecessary jargon, but demonstrate that you are well versed with any industry concepts and use specific terminology if appropriate
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explain what makes your business stand out from the competition or why everyone is going to love it. This is your business’ unique selling point (USP)
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list any existing key assets (eg intellectual property, retail space, vehicles or equipment)
Background information
The background to your business idea will often be as important to potential investors as the concept itself. If you previously worked in the relevant industry and decided to go it alone, this will show that you already have a grounding and possibly useful contacts. Don’t shy away from selective name-dropping (including any mentors you may have), particularly if you can get a good reference from leading industry figures.
Details of any work already carried out
If you have already carried out any work toward your business goal you should include this in your business outline. Doing this with a view to starting your business will show that you are willing to put in the required effort on your own, without waiting for a helping hand.
An explanation of who will own the business
This should outline the type of business structure you wish to operate under and the proposed ownership structure (eg shareholdings or partnership details). This will allow investors to understand how you wish to set up and run your business and help them decide whether they should be talking to anyone else (eg other investors, company founders or co-owners).
If you have any questions or concerns, or require help with your business plan, Ask a lawyer for assistance.
